Navigating ethical complexities in social entrepreneurship: insights from Portuguese social entrepreneurs

Purpose Social entrepreneurship is increasingly recognised for addressing complex social issues, yet its definition remains vague. Although social entrepreneurs are often celebrated as virtuous agents of positive change, they experience complex challenges and ethical dilemmas in their daily work. This paper aims to explore the lived experiences of social entrepreneurs in Portugal and to identify the ethical issues influencing their work. Design/methodology/approach By using a phenomenological research approach, this study conducted 20 in-depth semi-structured interviews with Portuguese social entrepreneurs. The interviews examine their life experiences to uncover the challenges and ethical issues they face. Findings This study identifies key areas where ethical tensions arise influencing the emergence of challenges for social entrepreneurs. These areas include the absence of a specific legal framework for social enterprises, complexities in human resource management, partnership dynamics, financial sustainability pressures, issues of transparency and accountability and the risk of mission drift. Practical implications This study offers valuable insights into the ethical dimensions of social entrepreneurship, emphasising that social entrepreneurs, like those in non-profit sectors, face significant ethical dilemmas. These findings offer valuable insights for researchers and practitioners to expand their understanding of social entrepreneurship. By recognising these challenges scholars and policymakers can foster a more informed and nuanced discourse on the field. Originality/value This study contributes to the underexplored intersection of ethics and social entrepreneurship, providing new insights into the ethical realities faced by social entrepreneurs in Portugal.